China has come up with a post-COVID-19 recovery package focusing on stability and tech innovation, without a GDP growth target. Nicholas Chui of Aberdeen Standard explained the logic behind this unusual package and shared his new equity investment themes.
29 June 2020
Recently, the Chinese government revealed its economic recovery package post-COVID-19. Much different from the 4-trillion RMB stimulus package China adopted in 2008 amid the global financial crisis, this recovery package has a much smaller headline figure but has a clear focus on supporting economic stability, SME development and technology innovation. It is also the first time for decades that China has scrapped a GDP growth target. What is the logic behind this unusual package and how does it translate into equity investment themes in China? ATC Initiative interviewed Nicolas Chui, Investment Director of Aberdeen Standard and Lead Manager of Aberdeen Global China A Shares Equity fund, one of the largest China A-Shares equity funds with USD3.4 billion under management.